Question

Difference between management contract and franchising

Answer 1

MANAGEMENT CONTRACT.

A management contract is a service contract. The manager manages the day to day operations of a business, in exchange for agreed upon compensation and benefits. The manager need not be an owner of the business.

FRANCHISE.

A franchise contract is a licensing contract. A franchisee owns a business, but pays a proportion of profits, and conducts certain business operations in an agreed upon manner, in exchange for the permission to use the franchisor's business model and intellectual property.

Answer 2

Management contract and franchising

Explanation:

• The management contract forms an agreement under which the operation control of a business is established that performs the necessary management functions is thus a service contract.

• It can involve a various types of functions as the technical operation and of a production facility, the management of personnel, and accounting.

• A franchise contract is a licensing contract as the franchising is a contractual relationship between owner and buyer of a brand name. The franchiser lets the franchisee to use the trademark along with exchange for a fee.

• An example of the management contract is the hotel contract and Motels for the franchise model.

Learn more about the management contract and franchising.

• https://brainly.in/question/3458703 answered by DhruvVarshney11111.